Key Considerations For Gift Agreements

It is not necessary to have a gift agreement in order to make a gift. However, it is important for charitable gifts and charitable pledges made by donors to charities be documented. A gift agreement provides evidence that a gift has or will be made and can help avoid confusion in the future as to whether a gift has been made and the terms of that gift. A pledge agreement is an agreement that records a commitment by a donor to make a gift at a future time. Documentation of charitable pledges will be particularly important when the registered charity is relying on the satisfaction of the charitable pledge in order to begin or continue a project or engage in or continue research. Charities of a certain size that receive gifts on an ongoing basis will likely draw up standard gift agreements in order to streamline administrative processes. While such documentation does not need to be lengthy or complex, it is advisable that it contain certain provisions to ensure